Q&As

We have several Financial Ombudsman Service cases where the initial assessor has ruled that the relevant investment was mis-sold and has issued guidance as to the calculation of the quantum of compensation, but has left it to the bank to make the actual calculation. However, the bank is simply refusing to engage. Is there anything we can do other than refer the matter back to the Ombudsman? By not responding, is the bank guilty of an abuse of process?

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Published on LexisPSL on 22/11/2021

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • We have several Financial Ombudsman Service cases where the initial assessor has ruled that the relevant investment was mis-sold and has issued guidance as to the calculation of the quantum of compensation, but has left it to the bank to make the actual calculation. However, the bank is simply refusing to engage. Is there anything we can do other than refer the matter back to the Ombudsman? By not responding, is the bank guilty of an abuse of process?

We have several Financial Ombudsman Service cases where the initial assessor has ruled that the relevant investment was mis-sold and has issued guidance as to the calculation of the quantum of compensation, but has left it to the bank to make the actual calculation. However, the bank is simply refusing to engage. Is there anything we can do other than refer the matter back to the Ombudsman? By not responding, is the bank guilty of an abuse of process?

We refer you, in general to Practice Notes: Financial Ombudsman Service—remedies, Financial Ombudsman Service—essentials, and The complaint-handling process of the Financial Ombudsman Service.

DISP 3.5.4R in the FCA Handbook states that the initial assessment of the Financial Ombudsman Service (FOS), sent to both parties, must set out the case handler’s reasons and a time limit within which either party must respond. If either party then indicates disagreement with the provisional assessment within that time limit, then the Ombudsman will proceed to making a final determination.

If a firm does accept the initial assessment within the time limit given and does not do what it has agreed to do, then it may not be complying

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